Apache (APA) Rating Lowered to Hold at Zacks Investment Research
According to Zacks, “Apache’s large geographically diversified reserve base and high-quality drilling inventory bode well. The company’s increased focus on the Permian basin- known for its high internal rates of return is the real driver. The exit from Canadian operations has freed up substantial capital for further expansion in the Permian basin. However, Apache is burdened with high leverage, restricting its financial flexibility and limiting growth in process. Moreover, pipeline takeaway constraints in the Permian Basin are also a concern. Moreover, while Apache’s 2016 Alpine High discovery – estimated to hold massive oil and natural gas reserves – is hailed as a game-changer for the company, Apache is struggling with natural gas production from the play considering the extremely low prices of the commodity prevailing at the Waha hub in West Texas. Therefore, the stockwarrants a cautious stance.”
Several other analysts have also commented on the stock. Raymond James set a $44.00 price objective on shares of Apache and gave the stock a buy rating in a report on Wednesday, January 23rd. Credit Suisse Group raised their price objective on shares of Apache from $36.00 to $37.00 and gave the stock a neutral rating in a report on Thursday, February 28th. Morgan Stanley set a $27.00 price objective on shares of Apache and gave the stock a sell rating in a report on Tuesday, January 29th. Seaport Global Securities restated a hold rating on shares of Apache in a report on Wednesday, January 30th. Finally, Barclays assumed coverage on shares of Apache in a report on Wednesday, January 16th. They issued an underweight rating and a $29.00 price objective for the company. Five research analysts have rated the stock with a sell rating, thirteen have assigned a hold rating and six have given a buy rating to the stock. The stock currently has an average rating of Hold and an average price target of $41.82.
Apache (NYSE:APA) last posted its earnings results on Wednesday, May 1st. The energy company reported $0.10 earnings per share (EPS) for the quarter, topping the Thomson Reuters’ consensus estimate of $0.09 by $0.01. The company had revenue of $1.64 billion for the quarter, compared to analysts’ expectations of $1.63 billion. Apache had a positive return on equity of 6.71% and a negative net margin of 2.08%. Apache’s quarterly revenue was down 6.4% on a year-over-year basis. During the same period last year, the firm earned $0.32 earnings per share. As a group, analysts anticipate that Apache will post 1.11 EPS for the current fiscal year.
In other Apache news, Director John E. Lowe bought 5,000 shares of the stock in a transaction dated Tuesday, May 7th. The stock was purchased at an average cost of $30.25 per share, for a total transaction of $151,250.00. Following the completion of the acquisition, the director now owns 25,000 shares of the company’s stock, valued at $756,250. The transaction was disclosed in a legal filing with the SEC, which is accessible through this link. 0.69% of the stock is currently owned by company insiders.
Several hedge funds have recently added to or reduced their stakes in APA. BlackRock Inc. raised its holdings in Apache by 7.2% in the 4th quarter. BlackRock Inc. now owns 27,130,392 shares of the energy company’s stock worth $712,173,000 after acquiring an additional 1,828,617 shares during the last quarter. Harris Associates L P raised its holdings in Apache by 5.8% in the 4th quarter. Harris Associates L P now owns 19,644,841 shares of the energy company’s stock worth $515,678,000 after acquiring an additional 1,075,776 shares during the last quarter. Dimensional Fund Advisors LP raised its holdings in Apache by 2.4% in the 1st quarter. Dimensional Fund Advisors LP now owns 5,625,402 shares of the energy company’s stock worth $194,999,000 after acquiring an additional 134,194 shares during the last quarter. Geode Capital Management LLC raised its holdings in Apache by 5.6% in the 1st quarter. Geode Capital Management LLC now owns 5,141,462 shares of the energy company’s stock worth $177,884,000 after acquiring an additional 274,723 shares during the last quarter. Finally, Northern Trust Corp raised its holdings in Apache by 3.8% in the 4th quarter. Northern Trust Corp now owns 4,852,843 shares of the energy company’s stock worth $127,387,000 after acquiring an additional 176,822 shares during the last quarter. Hedge funds and other institutional investors own 99.29% of the company’s stock.
Apache Corporation, an independent energy company, explores for, develops, and produces natural gas, crude oil, and natural gas liquids (NGLs). The company has operations in onshore assets located in the Permian and Midcontinent/Gulf Coast onshore regions; and offshore assets situated in the Gulf of Mexico region.
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